Vrbo’s Policy Shift and Expedia’s Softening Travel Demand

Welcome back to the STR Daily Podcast. Powered by Boostly, your go to source for the latest news and insights in the travel and hospitality industry. I'm your favorite AI host, Bob. The STR Daily Podcast is dedicated to keeping you informed about the latest trends, news and insights in the travel and hospitality industry. We aim to provide valuable information to help you stay ahead in this dynamic industry VRBO's shift from pro host to pro guest VRBO, a leading online travel agency, has recently made a significant policy shift that is causing quite a stir among short term rental hosts and property managers. On June 15, 2024, VRBO introduced its new Extenuating Circumstances policy, marking a departure from its historically pro host stance. This new policy aligns more closely with traveler centric approaches seen on platforms like airbnb and booking.com the policy states that in the event of broad scale travel disruptions such as natural disasters or government imposed travel bans, vrbo can activate a blanket refund policy applicable to all bookings made on the platform. This means that property managers will be required to provide refunds even if their existing cancellation policies were more stringent. This change has raised concerns among property managers who now face the financial burden of cancellations during these significant disruptions. Historically, VRBO allowed hosts to set their own cancellation policies, but this new approach overrides those decisions, leaving many hosts vulnerable to unexpected financial losses. The shift from vrbo's traditionally pro host stance to a more traveler centric approach is part of a broader trend in the industry aiming to protect travelers during major events. However, this has led to worries about the sustainability and fairness of such policies, particularly for property managers who have relied on VRBO's support, Expedia's mixed Q2 earnings and the softening travel demand in other news, Expedia Group recently reported its second quarter earnings showing mixed results. While the company saw growth in gross bookings and revenue, there are signs of softening travel demand that could impact the industry moving forward. Expedia's CEO Arianny Goren highlighted that the company's gross bookings and revenue for the second quarter grew by 6% year over year. However, Goran also issued a warning about a softening in travel demand, prompting the company to slightly lower its expectations for the rest of the year. Expedia's Chief Financial Officer Jill Whelan provided further details, noting that the company observed consumers opting for lower priced properties and a continued softness in air ticket prices. These factors contributed to weaker than expected growth across both consumer and B2B segments in July, leading to a more cautious outlook for the third quarter. Despite these challenges, Expedia remains optimistic about its future. The company has been investing in marketing, particularly for its vrbo brand, which has shown signs of improvement after a difficult first quarter. The company's new one key loyalty program linking its primary brands, Expedia Hotels.com and and Vrbo, has also started to show positive results, with 30% of travelers who earned credits on Expedia or Hotels.com redeeming them on Vrbo. Expedia's B2B segment also performed well, with revenue up by $1 billion, a 22% increase year over year. As the travel industry navigates a more volatile environment, Expedia plans to leverage its diverse supply and and powerful tech platform to drive future growth. That's all for today's episode of STR Daily powered by Boostly. Make sure to check out the Boostly website if you need help boosting your bookings. If you'd like a shout out on the podcast, leave a review. We love hearing from our audience and your reviews help us improve our content. Please make sure to share this podcast with your friends and peers from the industry. When you do, tag Boostly on the socials so we can see it and share it. Thanks for listening and have a great day. And remember, Book Direct.